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3 Ways To Invest In Silver In 2023

Updated: Mar 1, 2023

When the markets are volatile, many investors aim for other asset categories to spread or expand their range of investments. A favourite among them is gold.

But silver is also a valuable asset that can provide refuge during recessions. Like its counterpart, it offers an excellent safeguard against an overall flux in the prices of commodities and services.

But is it a worthwhile investment? Here’s what you need to know.

Factors That Influence Silver Prices

Similar to other commodities or elements with a high value, silver prices are affected by demand, supply, and speculation. What makes silver quite volatile is that it attracts a smaller market, unlike gold. Moreover, its market liquidity is low.

But Why Should You Bank On Silver As A Worthy Investment?

Knowing the factors that influence the price, you may wonder if you should see silver as an asset. If you're willing to go through with it, below are reasons why it’s a worthy choice:

  • Safeguards your wealth: Commodities such as silver hold their value during an inflation period. Whenever this happens, many investors suffer losses since inflation weakens the value of their assets. If you have a USD$100 note right now, you'll purchase much less than that note could have two decades ago. In contrast, silver doesn’t have the same issues. Since its value stays relatively the same, it remains solid while everything else fluctuates.

  • Offers stability: During economic instability and geopolitical tensions, silver offers refuge to investors. Currencies are affected or influenced by the total amount of money in circulation and interest rates. And those are subject to what risks and possibilities markets must juggle at the moment. But silver's value is influenced only by demand and supply.

  • Lets you diversify: Many investors put their money on shares, assets, and bonds. The thing is that these can underperform when the economy isn't stable. Diversifying your investments by buying a commodity such as silver allows you to be safe in a prolonged economic downturn since it’s practically immune to depreciation.

Like other valuable metals, you can procure silver or silver bars from different companies, such as Gainesville Coins. You can also buy shares from a company that manufactures it.

How Do You Invest In Silver?

Here are three popular, legitimate methods to do it in 2023:

Purchase Silver Mutual Funds And ETF

Silver is tied to financial tools that exist in paper form. Therefore, if you're not interested in owning the actual silver bars, you can get them as paper assets.

Meanwhile, silver mutual funds own a range of equities in a company that produces silver. These are equivalent to silver price quantities and buy into stocks of firms that extract the metal. Going this route is another good way to invest in it. Instead of buying the actual bars, you take part in the industry that manufactures them directly.

Silver exchange-traded funds (ETF) are another method to invest in actual silver bars. However, you own them through a trust, such as the iShares Silver Trust ETF. This tracks the prices of the silver it owns. As an investor, you hold a unit of equity of the exchange-traded fund that holds the metal. You can get exchange-traded funds from online dealers.

Purchase High Standard Silver

This is the traditional method of investing in silver. You buy the actual metal and keep it either in coin form or bars. Most people prefer the former.

The American Silver Eagle is an excellent example of a pure silver coin. The weight and clarity are assured, with each coin having at least one troy particle of 99.9% unadulterated high-standard silver.

Silver bars are the best if you want to buy in large amounts. But these aren't available for sale by private entities or coin stores. You buy them in amounts varying between one particle to 100 particles.

Future Contracts

This is a convenient method to bet on the increasing or decreasing prices of silver.

One advantage it provides is that you avoid the stresses of holding the actual metal. Future contracts have high leverage, making participating in or trading in the silver industry attractive. You invest a small amount of money in holding a larger position. In return, you earn loads of cash fast when the market shifts in the right direction. However, the losses can be significant if it goes the opposite way.

Basically, future contracts carry a huge risk for equally large gains. They're appropriate for skilled traders who have substantial account balances.

Should You Go Ahead?

Silver has secured its place historically as a sound investment. Still, different investors have different views. Silver may not be the best choice for an investor after high profits with high-risk exposure. Rather, it fits those who want a more secure investment with practical uses.

It’s a matter of weighing the odds and doing what suits your portfolio management best. Don’t hesitate to talk to experts to learn more.